Economy hits INM revenues

Revenues at media group Independent News & Media fell last year as poor economic conditions continued in Ireland, with the group recording a loss for 2011.

Underlying group revenue was down by 5.6 per cent, with the group citing the challenging trading conditions on the island of Ireland. Operating profit was down by 8.6 per cent to €75.5 million.

The media group recorded a loss of €63.6 million last year as a pretax profit of €62 million was reversed by an exception charge of more than €125 million. That charge related to non-cash impairment charges on intangible assets in Ireland, and INM's share of the exception charge incurred by APN News & Media on its New Zealand mastheads.

However, INM said its Irish titles, which include the Irish Independent, the Evening Herald, the Sunday World, Belfast Telegraph, Sunday Life and 13 regional newspapers, remained profitable.

Earnings before interest, taxation, depreciation and amortisation was €102.2 million. That figure included €15.8 million of dividends received by the group.

The South African division, meanwhile, saw revenues fade compared with 2010, which was lifted by the Fifa World Cup. INM said underlying advertising revenue fell by 6.2 per cent, and underlying circulation revenue took a 2.2 per cent hit.

The group cut costs by 11 per cent to €482.5 million over the 12 months. The fall comes despite a rise in the price of newsprint in Ireland, and the company’s investment in its digital operation, which includes independent.ie and coupon site GrabOne.ie. That investment paid off for the media group, with underlying revenue rising by 9.6 per cent last year.

The group also cut its net debt by almost 10 per cent to €426.8 million over the year.

Group chief executive Gavin O’Reilly said 2011 had been a challenging year for the industry.

"Forecasting in the current climate is very difficult and, at present, advertising conditions remain challenging and erratic. There has been some encouraging trading in recent weeks, particularly in Ireland, but visibility remains short and susceptible to influence by macro-economic factors,” said Mr O’Reilly.

"INM has a strong portfolio of market-leading and profitable titles. The group also has a well invested and increasingly efficient asset base, with no significant near-term capital expenditure requirements.”